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Data, Targeted Advertising and Quality of Journalism: The Case of Accelerated Mobile Page (AMP)

Author

Listed:
  • Jeon, Doh-Shin
  • Yan, Jun

Abstract

This paper studies how newspapers’ adoption of Google’s Accelerated Mobile Pages (AMP), which is a publishing format that enables instant loading of web pages in mobile browsers, changes data allocation and thereby newspapers’ incentive to invest in quality journalism when consumer data are used for targeted advertising. The adoption of AMP allows Google to obtain consumer data from AMP articles and to combine it with other sources of consumer data to improve the targeting of the advertisements served by Google on other websites. Even if such data combination increases static efficiency, it can reduce dynamic efficiency when it lowers the ad revenue per newspaper traffic, thereby reducing the quality of journalism. Newspapers face a collective action problem as a newspaper’s adoption of AMP generates negative externalities to other newspapers through search ranking and data leakage. By leveraging its market power in search and ad intermediation, Google can induce newspapers to adopt AMP. We provide policy remedies which eliminate the externalities. Our remedies are relevant to current regulatory interventions to make Google pay for displaying newspapers’ content.

Suggested Citation

  • Jeon, Doh-Shin & Yan, Jun, 2020. "Data, Targeted Advertising and Quality of Journalism: The Case of Accelerated Mobile Page (AMP)," TSE Working Papers 20-1171, Toulouse School of Economics (TSE), revised Apr 2022.
    • Handle: RePEc:tse:wpaper:125021
    as

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    References listed on IDEAS

    as
    1. Attila Ambrus & Emilio Calvano & Markus Reisinger, 2016. "Either or Both Competition: A "Two-Sided" Theory of Advertising with Overlapping Viewerships," American Economic Journal: Microeconomics, American Economic Association, vol. 8(3), pages 189-222, August.
    2. Anna D’Annunzio & Antonio Russo, 2020. "Ad Networks and Consumer Tracking," Management Science, INFORMS, vol. 66(11), pages 5040-5058, November.
    3. Chrysanthos Dellarocas & Zsolt Katona & William Rand, 2013. "Media, Aggregators, and the Link Economy: Strategic Hyperlink Formation in Content Networks," Management Science, INFORMS, vol. 59(10), pages 2360-2379, October.
    4. Damien Geradin & Dimitrios Katsifis, 2019. "An EU competition law analysis of online display advertising in the programmatic age," European Competition Journal, Taylor & Francis Journals, vol. 15(1), pages 55-96, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Targeted Advertising; Data Combination; Data Leakage; Quality; of Journalism; Search Engine;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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